Plastics Firm A. Schulman Posts Wider Loss of $10.5 Million in Second Quarter

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Researched by Industrial Info Resources (Sugar Land, Texas)--A. Schulman Incorporated (NASDAQ:SHLM) (Akron, Ohio), a supplier of plastic compounds and resins, has posted a second-quarter 2009 loss in net income of $10.5 million. The company lost nearly $3.8 million in the same period of the previous year. The wider loss in the most recent quarter is attributed to an "unprecedented" decrease in demand that caused volumes to sink, the company said. "The demand slowdown we experienced in November 2008 continued into December and January," said Joseph Gingo, Chairman, President and CEO. "The theme of the entire quarter was a lack of customer demand."

Sales for the quarter totaled $272.69 million, down 43.2% compared with $479.8 million year over year. Despite making a profit in February, major declines led to an overall quarterly loss, the company said.

Net Sales to Unaffiliated Customers

• Europe: $198.6 million, down 43.7% compared with $353.1 million
• North America Masterbatch: $23.2 million, down 27.1% compared with $31.9 million
• North America Engineered Plastics: $25.4 million, down 52.6% compared with $53.5 million
• North America Distribution Services: $16.4 million, down 43.9% compared with $29.2 million
• Asia: $9 million, down 24.5% compared with $11.9 million
• Invision (thermoplastics): $40,000, down 67.5% compared with $123,000

"We will continue to invest in new product development to address specific customer needs in all of our markets," Gingo said. "At the same time, if the economy continues to deteriorate, we will use our cash position to support further restructuring as required to achieve profitable levels of performance."

Industrial Info is tracking the closure of a plastics line by A. Schulman. The project is expected to be complete in the third quarter of 2009. Details on this project as well as others in the Chemical Processing Industry can be found in Industrial Info's North American and International Industrial databases.

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